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Note 2 - Notes Payable and Long-term Debt
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
2.
N
OTES PAYABLE AND LONG-TERM DEBT
 
On
September 18, 2015,
we executed a Promissory Note and Business Loan Agreement with BOKF, NA d/b/a Bank of Texas (“BOKF”), which provides us with a line of credit facility of up to
$6,000,000
and is secured by our inventory. On
August 10, 2017,
this line of credit was amended to extend the maturity to
September 18, 2019.
The Business Loan Agreement contains covenants that requires us to maintain a funded debt to EBITDA ratio of
no
greater than
1.5
to
1
and a “Fixed Charge Coverage Ratio” greater than or equal to
1.2
to
1.
Both ratios are calculated quarterly and are based on a trailing
four
quarter basis. For the
six
-month periods ended
June 30, 2018
and
2017,
there were
no
amounts drawn on this line.
 
Also, on
September 18, 2015,
we executed a Promissory Note and Business Loan Agreement with BOKF which provides us with a line of credit facility of up to
$10,000,000
for the purpose of repurchasing shares of our common stock pursuant to our stock repurchase program, announced in
August 2015
and subsequently amended, which permits us to repurchase up to
2.2
million shares of our common stock at prevailing market prices through
August 2019. 
Subsequently, this line of credit has been amended to increase the availability from
$10,000,000
to
$15,000,000
for the repurchase of shares of our common stock through the earlier of
August 25, 2018
or the date on which the entire amount is drawn. We are currently working to amend this facility to extend the drawdown period and conversion date to
August 25, 2019.  
During the draw down period, we are required to make monthly interest-only payments. At the end of this draw down period, we expect that the principal balance will be rolled into a
4
-year term note. This Promissory Note is secured by a Deed of Trust on the real estate located at
1900
SE Loop
820,
Fort Worth, Texas.   For the
six
months ended
June 30, 2018,
we drew approximately
$983,000
on this line which was used to purchase
133,295
shares of our common stock.  There were
no
amounts drawn on this line during the
six
month ended
June 30, 2017. 
At
June 30, 2018,
the unused portion of the line of credit was approximately
$6.6
million.
 
Amounts drawn under either Promissory Note accrue interest at the London interbank Eurodollar market rate for U.S. dollars (commonly known as “LIBOR”) plus
1.85%
(
3.934%
and
3.351%
at
June 30, 2018
and
December 31, 2017,
respectively).
 
Amount outstanding under the above agreements consisted of the following:
 
   
Jun 30,
201
8
   
Dec 31,
201
7
 
Business Loan Agreement with BOKF – collateralized by real estate; payable as follows:
               
Line of Credit Note, as amended, in the maximum principal amount of $15,000,000, interest due monthly at LIBOR plus 1.85%; matures September 18, 2022
  $
8,354,668
    $
7,371,730
 
                 
Line of Credit Note, as amended, in the maximum principal amount of $6,000,000, interest due monthly at LIBOR plus 1.85%; matures September 18, 2019
   
-
     
-
 
    $
8,354,668
    $
7,371,730
 
Less current maturities
   
1,740,556
     
614,311
 
    $
6,614,112
    $
6,757,419
 
 
The terms of our lines of credit contain various covenants with which we were in compliance as of
June 30, 2018
and
December 31, 2017.